/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
DRUMMONDVILLE, QC, Aug. 23 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or
the "Corporation") (TSX : CVT), is pleased to announce that the Corporation
has completed its previously announced Treasury private placement of
4,000,000 common shares of the Corporation at a price of $1.25 per share for
gross proceeds to CVTech of $ 5.0 million.
The private placement was made pursuant to prospectus exemptions under
applicable securities legislation. CVTech obtained an advanced income tax
ruling from Revenue Québec confirming that its common shares qualify under the
SME Growth Plan ("régime Actions-croissance PME"). The common shares issued in
the private placement therefore constitute eligible shares for purposes of the
SME Growth Plan, providing a 100% deduction for Québec income tax purposes to
eligible investors, provided certain conditions are met.
"As I announced it previously in the press release of August 9, the
proceeds of this offering will increase the Corporation's working capital and
will be used for general corporate purposes" reiterates André Laramée,
President and Chief Executive Officer of CVTech Group inc.
As a result of the private placement CVTech has 54,865,000 shares in
Burkman Capital Corporation acted as advisor to CVTech Group inc.
CVTech Group is a management corporation. Some of its subsidiaries
design, manufacture and sell continuously variable transmissions ("CVT").
Another subsidiary, Thiro Ltd. ("Thiro"), provides services for the
construction and maintenance of electrical transmission and distribution
lines. It has two (2) indirect subsidiaries: Thiro USA Inc. and J.J.L.
Déboisement inc. The subsidiary, CVTech-AAB inc. ("AAB") specializes in the
remanufacturing of crankshafts, cylinders and industrial engines.
This document may contain forward-looking statements reflecting
management's expectations with respect to future events. Such forward-looking
statements are dependent upon a certain number of factors and are subject to
risks and uncertainties. Actual results may differ from those expected. The
Company's management does not assume any obligation to update or revise these
forward-looking statements as a result of new information or future events
other than the ones required by law.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act"), or any state securities
laws and may not be offered or sold within the United States or to United
States Persons unless registered under the U.S. Securities Act and applicable
state securities laws or an exemption from such registration is available.
This news release is not for distribution to United States newswire
services or for dissemination in the United States.
For more detailed information concerning CVTech, please consult the SEDAR
database at: www.sedar.com as well as the Company Website at:
For further information:
For further information: André Laramée, MBA, CEO, CVTechGroup Inc.,
(819) 477-3232; Mario Trahan, CMA, Chief Financial Officer, CVTech Group Inc.,